| The Industrial and Commercial Bank of China (ICBC) is the largest powerful bank among other state-owned commercial banks in China. Sixteen years of reform and development has witnessed significant improvements in its operation scale, level of technology and equipment, financial strength, network facilities and services to the state economic construction and people's living standard. Viewed from the requirements of China's reform and opening up and domestic financial restructuring, the achievements in reform made by ICBC are preliminary. Backwardness is still seen in certain aspects, particularly, there exist some disadvantages in the reform of its credit management. This has, to some extent, affected and limited the operation, reform and development of ICBC. Under such a background this thesis aims to probe into the existing issues in its credit management system and suggest a train of thoughts on its reform.The first part of this thesis makes an analysis of the present condition and disadvantages of the bank's credit management system, the test it may possibly face after China's entry to WTO and its inadaptabilities internally and externally under the current situation.Analysis on the current condition of ICBC's credit management mechanism mainly focuses on the guiding ideology, organizational setup, decision-making mechanism, market position and personnel quality of credit management. On the basis of the current conditions of credit management its main disadvantages are observed: firstly, its operational efficiency is poor due to a historical burden; secondly, credit management reform is far lagging behind; thirdly, the restriction of mechanism reduces the bank's competitiveness; fourthly, its unclear market position leads to weak development of business; and fifthly, its incentive mechanism is not sound, thus making the rank of personnel unstable. After China's entry to WTO, ICBC would further encounter more serious tests and challenges in terms of financial security, market share, banking service, economic return, competition with rivals, mixed operation, brain drain, structural and technological upgrading.The second part probes into the basic train of thought on the reform of the bank's credit management. Going on with further study of the deep-rooted reasons for the existence of the foregoing issues, and based on the thought and idea of modern enterprise management, some thoughts for ICBC to reform its credit management are proposed, mainly involving the following areas:1. Guiding thought and operating idea. The current guiding thought regarding credit management should be changed so as to foster a new-type of idea for operation and management. The traditional practice of making credit policies oriented to the government plan and centered at state-owned enterprises should be done away with, instead, the state's plans will no longer be used as the sole basis for formulating the credit plans of the ICBC, Instead, a new-type of idea should be gradually built up with its operation oriented to the market and economic efficiency as the core under the condition of risk prevention. On this basis ICBC should determine strategies of its own regarding business development, customers, market position and marketing so as to ensure the integration of safety, liquidity and efficiency, and the organic combination of both state and bank interests. Besides, greater efforts should be made to shift the attention from merely liability management to overall asset liability management; to strengthen study of the operation of credit assets; to foster the concept of marketing loans; to apply the pricing model for loans; to draw on and apply Western enterprise management theories and practices.2. Setup of credit management. Reform of the setup of credit management should concentrate on services to customers and aim at intensive operation. This requires that the bank sublate traditional division of labor according to functions and redesign its business process in order to guarantee comprehensive serv...
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